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Cryptocurrency Banned: What Countries are banning crypto?

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 Cryptocurrency Banned: What Countries are banning crypto???

in this post we will talk about country that are banning crypto and why they are doing it.


The world of cryptocurrencies is gaining traction, and it seems that more and more governments are looking to regulate them with each passing day. But, some of the countries on this list decided to go one step further than that and ban cryptocurrency entirely in their jurisdiction. So, what countries are banning cryptocurrency? Here’s a quick look at the countries that are leading the charge in banning cryptos (in no particular order). For more info about how to decide whether cryptocurrencies are right for you, check out our Cryptocurrency Decision Guide.


Which country outlawed it first

While cryptocurrency is not currently banned in any country, there are a few that have taken a strong stance against it. China was the first to outlaw ICOs (Initial Coin Offerings) and exchanges, followed by South Korea. Russia has also been cracking down on cryptocurrency, though they have not outright banned it. These countries have taken a hard line against cryptocurrency due to its volatility and lack of regulation.


 France is following suit, making ICOs illegal in late 2017 and then further regulations on cryptocurrencies in 2018. While these three countries have outlawed cryptocurrency to various degrees, most countries have not banned crypto—for now. Only time will tell if other countries follow suit.


Why Russia & China Are Cracking Down on Crypto

In recent months, both Russia and China have taken major steps to crack down on cryptocurrency. In China, ICOs are now illegal and exchanges have been shut down. In Russia, a new bill proposes to ban cryptocurrency entirely.


 Russia and China aren’t alone in their anti-crypto stance. Venezuela, Iran, and Bolivia have banned bitcoin outright. While others, like India and South Korea, have been more measured but still expressed concern about cryptocurrency’s use in illegal transactions. And while neither Singapore nor Japan has outright banned crypto, they do impose restrictions on it (Japan has recently amended its law to allow for ICOs under certain conditions). Why are all these countries so concerned about crypto?


Iran's Ban Comes After a Government Inflation Spiral

After years of economic sanctions, Iran is in the midst of an inflation crisis. The government has been printing more money to try to keep up with rising prices, but it's not working. To combat this, the government has banned cryptocurrency trading. This move is controversial, as many Iranians see cryptocurrency as a way to get around sanctions and access international markets. The ban is also likely to hurt the Iranian economy, as crypto trading was one of the few bright spots in an otherwise struggling economy.


 Venezuela has been dealing with hyperinflation for several years, leading to a massive financial crisis that has left their economy in tatters. The government has been printing more money to try to keep up with rising prices, but it's not working. When they announced their own crypto, it initially seemed like they might be able to solve their problems. Instead, hyperinflation continued unabated and many residents became increasingly angry about how little value their currency had left. Many Venezuelans began investing in other cryptocurrencies instead of holding bolivars, which is part of what led to Venezuela banning cryptocurrency trading altogether.


India Implements Crypto Exchange Regulation, but Keeps its Ban in Place

India has been one of the most anti-crypto countries in recent years. After banning crypto exchanges in 2018, the country is now implementing regulations for them. 


This move comes as a surprise to many, as it seems to contradict the earlier ban. However, it's important to note that the ban on buying, selling, or trading crypto still stands. India is not alone in its anti-crypto stance. China, another powerhouse in the global economy, has also taken steps to crack down on cryptocurrency.


 Another country that remains strict on cryptocurrency is South Korea. The country banned anonymous trading in 2017 and prohibited banks from offering services to crypto-related businesses in 2018. It's important to note that traders can still make transactions, but only if they use their own capital. 


The ban was brought in following numerous hacks of crypto exchanges as well as some reports of tax evasion, which highlighted major problems with cryptocurrency regulations at the time.


It's Not Yet Illegal in South Korea, But Officials Are Watching

While South Korea has not yet banned cryptocurrency, officials are watching the situation closely. The country's Financial Services Commission has warned investors to be cautious when dealing with digital currencies. 

Officials are concerned about the potential for money laundering and other financial crimes.

In China, Bitcoin Exchanges Must Now Register with the Government (three sentences): China has long been skeptical of cryptocurrency. In September 2017, the Chinese government took a step further by requiring all bitcoin exchanges to register with the government.


Country that banned crypto

  • China has banned cryptocurrency exchanges and initial coin offerings (ICOs), and has also prohibited financial institutions from handling virtual currency transactions. India has also been cracking down on cryptocurrency, with the Reserve Bank of India (RBI) banning banks from dealing in virtual currencies.

  • In addition to China and India, South Korea has also placed restrictions on cryptocurrency trading, though it has not outright banned it. Russia has also taken steps to discourage the use of digital currencies, though it has not issued any official ban.

  • Other countries that have placed bans or restrictions on cryptocurrency include Vietnam, Bolivia, Ecuador, Iceland, Kyrgyzstan and Bangladesh.


Where is cryptocurrency banned

  • Cryptocurrency is often seen as a Wild West-type investment, and for good reason. The decentralized nature of digital assets means that there is no one government or financial institution that can control them. 

  • This has led to some countries taking a hard line against cryptocurrency, banning it outright. Here are some of the most surprising places where cryptocurrency is banned.

  • It’s important to note that cryptocurrency bans have not taken place across many different countries.

  •  In fact, only a few places have banned cryptocurrency, and most of them are small island nations or struggling African states that are desperate for ways to improve their economies. It’s important to know about these prohibitions so you can be aware of what is and isn’t legal in each country when it comes to cryptocurrency. 

  • This will help keep you out of trouble with government officials, as well as prevent you from getting scammed by someone posing as a legitimate business partner who can assist with cryptocurrency investment.


Where is crypto illegal

It's no secret that cryptocurrency is facing some serious challenges in terms of government regulation. In fact, in some parts of the world, crypto is outright banned. Here's a look at where crypto is illegal and what the consequences are for those caught using it.
Crypto has been banned in countries around the world for a variety of reasons.

 Sometimes, governments simply don't know how to properly regulate cryptocurrency (or they're slow to do so). Other times, there are reasons that are more political in nature. Either way, here's a look at all countries where crypto is illegal and why it's banned there.
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